As we entered Q1 2014, hope was high that this was it – this was the quarter when, with stocks at record higs, employment data improving and a confident Fed tapering, the US economy would reach escape velocity and back we could all go to “believing” in the futures once again. The 2.6% growth expected at the start of Q1 quickly evaporated into a -0.5% contraction in the economy due to “cold” weather in the winter. Of course, the Keynesian-hockey-stick believers have marked up their “been-down-so-long-it’s-gotta-bounce-back” Q2 expectations to 3.3% growth… so what could go wrong. One glimpse at the following chart will explain it all – and it’s the weather that will be blamed once again…(with 48% of the nation now in drought conditions).
“Just Too Cold” Weather knocked 3 percentage points of growth off the world’s largest economy…
Just how much will the most widespread drought in a century knock off the 3.3% hope for Q2?
with 48% of the nation abnormally dry and almost 15% in extreme drought…
We suspect phrases such as “it was just too hot to shop” or “due to unseasonably hot weather, sales of XXXXXXXXXXXXXXXXX were dramatically affected” will be prevalent in Q2 earnings calls…
via Zero Hedge http://ift.tt/1lCfPFY Tyler Durden